The competitiveness of South African table grape exports in the European markets : threats from Peru and Chile

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dc.contributor.advisorVink, N.en_ZA
dc.contributor.advisorVan der Merwe, Melissaen_ZA
dc.contributor.advisorCloete, Kandasen_ZA
dc.contributor.authorVan der Merwe, Jana-Mart
dc.contributor.otherStellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics.en_ZA
dc.date.accessioned2023-02-16T09:44:28Z
dc.date.accessioned2023-05-18T07:00:15Z
dc.date.available2023-02-16T09:44:28Z
dc.date.available2023-05-18T07:00:15Z
dc.date.issued2023-03
dc.descriptionThesis (MScAgric)--Stellenbosch University, 2023. en_ZA
dc.description.abstractENGLISH SUMMARY: International trade in table grapes has expanded remarkably over the last decade. In the Southern Hemisphere, rapid increases in supply from Peruvian producers have been observed, with Peru overtaking South Africa as the second-largest exporter in the Southern Hemisphere behind Chile. Chile and Peru’s main table market is the United States, but the increase in production in Peru has also resulted in higher export volumes to markets in Europe, potentially threatening South Africa’s position in the European Union (EU) and the United Kingdom (UK). This study measures and analyses South Africa’s competitive position of table grape exports relative to that of Peru and Chile in these markets. The primary objective of the study was to the determine whether South Africa, with 75% of its exports destined for Europe, will be negatively affected by these exogenous changes in Peru and Chile’s export-oriented table grape industries. The competitiveness of the table grape industry is directly and indirectly influenced by policy. This study first estimates the distortions faced by South African, Peruvian and Chilian export-oriented table grape producers in the period 2010 to 2019. This was done by applying Anderson et al.’s (2006) empirical framework to the tradable table grape exports of each country, as Kirsten et al. (2009) and Day (2018) have done previously for the South African agricultural sector. Second, the internationally recognised competitiveness measurement indices, relative trade advantage (RTA) and logarithmic relative export advantage (InRXA), were applied to measure the competitive advantage of table grapes for each country. Third, the indirect measurements were used to measure the distance and cost from South Africa, Peru and Chile to their main trading partners, including considering each country’s cost of insurance and freight (CIF) and free on board (FOB) unit values to analyse the impact of freight costs on exports to the EU and UK. Last, the trade barriers for each country to these markets were analysed to holistically consider the sustainability of the competitiveness of each country’s table grape industry. The findings from the study firstly highlight the importance of exchange rates in incentives for exports, with all three countries’ export-oriented table grape industries incentivised to produce and export table grapes. Secondly, this study showed that the policy environment in which South Africa’s table grape industry operates remains supportive, albeit at a decreasing rate, whereas the table grape industries of both Peru and Chile have moved from taxing to a supportive environment. Thirdly, South Africa’s table grape exports remained marginally competitive, while the competitiveness of Peru’s table grape exports grew exponentially. Consequently, this additional supply is placing downward pressure on market prices in the EU and UK. This challenges the competitiveness of South Africa’s export-oriented table grape industry, especially in the EU, but also in the UK, since transport costs are rising while prices received are constrained. Whilst South Africa’s table grape exporters has the potential to grow its global competitiveness, given the advantages of a depreciating rand, broader and more favourable market access outside the EU and UK is paramount. The availability of efficient infrastructure – electricity supply, roads, ports, vessels and reefer containers – is necessary to capitalise on this potential.en_ZA
dc.description.abstractAFRIKAANSE OPSOMMING: Internasionale handel in tafeldruiwe het die afgelope dekade merkwaardig uitgebrei. Vanuit die Suidelike Halfrond word vinnige toenames in aanbod van Peruaanse produsente waargeneem, met Peru wat Suid-Afrika verbysteek as die tweede grootste uitvoerder in die Suidelike Halfrond na Chili. Chili en Peru se belangrikste tafeldruifmark is die Verenigde State, maar die toename in produksie in Peru het ook gelei tot hoer uitvoervolumes na markte in Europa, wat moontlik Suid-Afrika se posisie in die Europese Unie (EU) en die Verenigde Koninkryk (VK) bedreig. Hierdie studie meet en ontleed Suid-Afrika se mededingende posisie van tafeldruifuitvoere relatief tot die van Peru en Chili in hierdie vernaamste markte. Die primere doel van die studie is om te bepaal of Suid-Afrika se uitvoere, waarvan 75% vir Europa bestem is, negatief geraak sal word deur hierdie eksogene veranderinge in Peru en Chili se uitvoergerigte tafeldruifbedrywe? Die mededingendheid van die tafeldruifbedryf word direk en indirek deur beleid beïnvloed. Hierdie studie skat eerstens die vervormings waarmee Suid-Afrikaanse, Peruaanse en Chileense uitvoergerigte tafeldruifprodusente vir die tydperk 2010 tot 2019 te doen gehad het. Dit is gedoen deur Anderson et al. (2006) se empiriese raamwerk vir die verhandelbare tafeldruiwe van elke land toe te pas, soos Kirsten et al. (2009) en Day (2018) dit voorheen vir die Suid-Afrikaanse landbousektor toegepas het. Tweedens is die internasionaal erkende mededingendheidmetingsindekse relative trade advantage (RTA) en logaritmiese relative export advantage (InRXA) toegepas om die mededingende voordeel van tafeldruiwe vir elke land te meet. Derdens is die indirekte metings gebruik om die afstand en koste vanaf Suid-Afrika, Peru en Chili na hulle vernaamste handelsvennote te meet, insluitend die oorweging van elke land se koste van versekering en vrag (CIF) en vry-aan-boord (FOB) eenheidwaardes om die impak van vragkoste op uitvoere na die EU en die VK te analiseer. Laastens is die handelsversperrings vir elke land tot hierdie markte ontleed om die volhoubaarheid van elke land se tafeldruifbedryf se mededingendheid holisties te oorweeg. Die bevindinge van die studie het eerstens die belangrikheid van wisselkoerse in aansporings vir uitvoer beklemtoon, met al drie lande se uitvoergerigte tafeldruifbedrywe wat aangespoor word om tafeldruiwe te produseer en uit te voer. Tweedens het hierdie studie getoon dat die beleidsomgewing waarin Suid-Afrika se tafeldruifbedryf funksioneer, ondersteunend gebly het, hoewel teen ‘n dalende koers, terwyl beide Peru en Chili se tafeldruifbedrywe van belasting na ‘n ondersteunende omgewing beweeg het. Derdens het Suid-Afrika se tafeldruifuitvoere marginaal mededingend gebly, terwyl Peru se tafeldruifuitvoere se mededingendheid eksponensieel gegroei het. Gevolglik plaas hierdie bykomende aanbod afwaartse druk op markpryse in die EU en die VK. Die situasie daag Suid-Afrika se uitvoergerigte tafeldruifbedryf se mededingendheid uit, veral in die EU, maar ook in die VK, aangesien vervoerkoste styg terwyl pryse wat ontvang word, beperk is. Terwyl Suid-Afrika se tafeldruiwe uitvoerders die potensiaal het om sy wereldwye mededingendheid te vergroot, gegewe die voordele van ‘n verswakkende rand, is breer en gunstiger marktoegang buite die EU en die VK uiters belangrik. Beskikbaarheid van doeltreffende infrastruktuur – elektrisiteitsvoorsiening, paaie, hawens, vaartuie en koelhouers – is nodig om hierdie potensiaal te benut.af_ZA
dc.description.versionMasters
dc.format.extentxi, 90 pages : illustrations (some color), maps
dc.identifier.urihttp://hdl.handle.net/10019.1/127016
dc.language.isoen_ZAen_ZA
dc.publisherStellenbosch : Stellenbosch University
dc.rights.holderStellenbosch University
dc.subject.lcshFarm produce – South Africa – Marketingen_ZA
dc.subject.lcshExport marketing – South Africaen_ZA
dc.subject.lcshTable grapes – South Africa – Marketingen_ZA
dc.subject.nameUCTD
dc.titleThe competitiveness of South African table grape exports in the European markets : threats from Peru and Chileen_ZA
dc.typeThesisen_ZA
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Masters Degrees (Agricultural Economics)